Angola - Country Commercial Guide
Agricultural Products

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-09-08

Overview

Agriculture accounted for 11.5 percent of Angola’s USD 62.7 billion GDP in 2020 (World Bank), and it provides employment, both formal and informal, for more than 46 percent of the Angolan population.  Prior to the 1975-2002 civil war, Angola was a major exporter of coffee, sisal, sugarcane, banana, and cotton, and it was self-sufficient in all basic food crops except wheat.  The civil war disrupted agricultural production and displaced millions of people.  Angola currently imports more than half of its food.  Angola is the United States’ fifth largest market for poultry products in the world.  

Angola has the natural resources to become one of the leading agricultural producers in Africa, as its diverse and fertile ecology is suited for a variety of crops and livestock.  However, the country currently only cultivates approximately 10 percent of its 35 million hectares of arable land.  An estimated 88 percent of farms in Angola are small to medium in size and are used mainly for communal and subsistence farming.  The agricultural commodities produced include cassava, bananas, potatoes, corn, sweet potatoes, citrus, and pineapples.  

Chicken remains the major U.S. agriculture export to Angola, and the sale of these products decreased significantly in 2020 due to the Angolan national currency devaluation, the COVID-19 pandemic, and a decrease in the purchasing power of the population.  On January 14, 2019 Angola enacted Presidential Decree 23/19, which protects 54 products that are produced domestically, an attempt to reduce competition from imports.

Leading Sub-Sectors

  • Retail Sector (consumer-oriented food products)
  • Poultry
  • Wheat Grain

Opportunities

Retail Sector (consumer-oriented food products)

In Angola, food is sold both through modern retail and informal channels.  Local industry sources estimate that approximately 70 percent of agricultural produce is channeled through retail sales.  Informal retail includes both small grocers as well as open air markets (locally called “Cantinas”).  Since the civil war ended in 2002, the importance of the informal market has declined, especially in urban centers such as Luanda, where formal retail is developing rapidly.  The government is trying to formalize retail by establishing specific areas for open markets.  In Luanda, municipal authorities are forcibly shutting down street vendors with laws that impose fines for both vendors and buyers.  Public health concerns are the main reason cited for the closures of informal open markets, as goods are often sold in poor condition, food is kept on the ground without refrigeration and exposed to the sun, and expired goods are sometimes offered for sale. 

As with many other things in the country, shopping itself is not without challenges.  Only a small percentage of Angola’s population owns a car, thus most people are dependent on overcrowded public mini-buses to reach hypermarkets and supermarkets.  Consequently, the majority of the population prefers to shop close to home in open-air markets or small grocers, which are perceived as offering fresher, less expensive food than formal supermarkets.  Even with more convenient supermarket locations opening in the past few years in the outer areas of Luanda, many Angolans feel more comfortable in informal markets.  For this reason, local formal retailers have come up with various strategies to attract the informal market customer.  Nosso Super, for example, opened its shops at locations near traditional marketplaces.  Hypermarket Kero, in turn, tries to create a comfortable environment for lower and middle-income customers by playing loud Angolan music, and the main cash and carry supermarkets have created a benefits card to reward client purchases.  

Changes in consumer profile and demographics, increasing urbanization, improvements in infrastructure, and an increase in the number of international brands available in the Angolan market are driving rapid developments in the retail landscape.  Consumers across income levels are becoming more sophisticated and demanding in terms of variety and quality.  In the past, Angolans were satisfied with small grocers selling dry goods, but now retailers are expected to offer frozen goods as well.  Historically, Portuguese, Lebanese, and Indians have been the dominant players in the Angolan grocery retail market.  However, due to the economic downturn since 2014 and the scarcity of foreign exchange, some of these third country traders left Angola.  The South African supermarket chain Shoprite expanded in Angola and new players have entered the formal retail space, including the hypermarket Candando.  Some supermarkets target wealthier Angolans and expatriates, such as Casa dos Frescos and Intermarket, which offer the greatest choice of fresh produce and higher quality standards.   

Leading Supermarket Retailers in Angola

Brand & Company

Outlets

Nosso Super (Nova Rede de Supermercados de Angola) 

28

Shoprite and Usave (South African Shoprite) 

17

Maxi Cash & Carry (Teixeira Duarte) 

14

Kero Hypermarket (Zahara Group) 

12

AngoMart (Noble Group)

11

Casa dos Frescos (Casa dos Frescos Group)

9

Fresmart (Newaco Group)

8

Candando (Contidis)

6

Alimenta Angola

4

InterMarket

4

MARTAL

2

MEL

2

Mercadao Cash & Cary (SODOSA Group)

2

TAKI (NDAD Group)

2

Mega Cash & Carry (Refriango Group) 

1

Jumbo 

1

Mazarati (Group Dimassaba) 

1

Deskontão

1

 Poultry

Chicken meat is the most widely consumed and most affordable protein in Angola.  Angola produces 25,000 tons of chicken meat per year, only 10 percent of total market demand of approximately 187,000 tons per year in 2020.  Producers include subsistence farmers, smallholder producers supported by government and non-governmental projects, and commercial operations.

From 2019 to 2020, Angola’s poultry imports in terms of volume decreased by 30 percent.  In 2020, Angola was the seventh largest market for U.S. poultry and poultry product shipments by volume and was the ninth in the world  by value.  U.S. poultry exports to Angola decreased by almost 46 percent in value terms from 2019 to 2020 due to the COVID-19 pandemic, the devaluation of the Angolan currency, and a related decrease in the population’s purchasing power.  Angola remains a strong market opportunity for U.S. frozen chicken leg quarters.  

Wheat

In the 1960’s and 1970’s, Angola produced about 25,000 tons of wheat per year, mainly in the southern Huambo province.  However, the civil war halted wheat production and destroyed flour milling capacity.

Faced with lost oil revenues since the end of 2014, the Angola government encouraged the development of wheat milling to replace relatively costly flour imports as part of its overall economic diversification plan.  Angola currently imports about 206,000 tons of wheat flour per year, mainly from Turkey and the European Union, at a value of US$69 million in 2020.  By replacing flour imports with wheat imports, Angola can reduce its dependence on foreign exchange as well as boost value-added local production.  Wheat mills already operating in Angola include the Grandes Moagens de Angola (GMA) project that has the capacity to produce 1,200 tons of wheat flour per day and is located at the Luanda Port for easier access to imported wheat.  The owners of the GMA mill started building an identical wheat mill in the Port of Lobito, on Angola’s southern coast.  Kikolo wheat mill on the outskirts of Luanda is operating with a capacity to produce 1,000 tons of wheat flour per day.  Grupo Carrinho is the third wheat mill in Benguela province.  With these three wheat mills, Angola is now considered to be self-sufficient in wheat flour production.  Some estimates say that Angola needs are about 600,000 tons per year and the total milling capacity is around 720,000 tons per year.  This increased capacity in wheat milling will increase demand for wheat grain, thus creating opportunities for U.S. wheat exporters.

Poultry and Wheat

2018

2019

2020

2021 estimated

Total Local Production

25

25

25

25

Total Exports

0

0

0

0

Total Imports

418 

360 

294

N/A

Imports from the US

183 

151

81

N/A

Total Market Size

443

285

319

N/A

Exchange Rates

245 

365

520

639

(total market size = (total local production + imports) - exports)
 Units: $ millions
 

For more details from the U.S. Department of Agriculture, contact:

Foreign Agricultural Service (FAS Luanda)

U.S. Embassy Luanda

Rua Huari Boumedienne, #32

Miramar, Luanda, Angola

Tel: (+244) 222-641-058

E-mail: Ricardo.Dias@fas.usda.gov 

 

Office of Agricultural Affairs (FAS/USDA)

U.S. Embassy Pretoria

877 Pretorius Street

Pretoria, South Africa 0001

Tel: (+27) 12-431-4057

Fax: (+27) 12-342-2264

E-mail: agPretoria@usda.gov

 

Animal and Plant Health Inspection Service (APHIS)

U.S. Embassy Pretoria

877 Pretorius Street

Pretoria, South Africa 0001

Tel: (+27) 12-431-4711